The chain, which has 240 stores and 7,000 staff, is estimated to have made a loss of £35 million in the year to April 30th.

The Financial Times suggests that the retailer suffered a 'cash crunch' as it tried to order stock for Christmas and was also operating without credit insurance.

Rumours suggest Deloitte may become the administrator, while there is a possibility that parts of the business might be sold off, saving some stores.

UPDATE: Sources have told Retail Week that Comet management have now confirmed to staff that the firm will go into administration next week.

This follows catalogue retailer Argos announcing last month that it is to close up to 75 stores over the next few years, and of course the failure of Best Buy earlier in the year.

Games retailer GAME went into administration in March, ultimately ending up in the hands of OpCapita as well - but seemingly with a more successful turnaround than Comet.

Let us know if you work at Comet or are otherwise impacted by this news.

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